UK pubs will close one a day at current tax rates, warns beer trade body

The UK will lose one pub every single day in 2025 due to high business taxes, according to new data from the British Beer and Pub Association (BBPA). 

The industry body, representing more than 20,000 pubs, warns that as many as 378 establishments across England, Scotland, and Wales could close this year. This would lead to more than 5,600 direct job losses.

The government can still solve the issue by swiftly reforming business rates for the sector, which the association describes as “one of the most highly taxed industries in the UK.”

BBPA adds that reducing the cumulative tax and regulatory burden would help more pubs stay open, leading to more investment and jobs and protecting spaces that, for many communities, are the only places left to gather.

Emma McClarkin, CEO of the British Beer and Pub Association, says: “Pubs are trading well, but most of the money that goes into the till goes straight back out in bills and taxes. For many, it’s impossible to make a profit, which often leads to pubs turning off the lights for the last time.”

“When a pub closes, it puts people out of a job, deprives communities of their heart and soul, and hurts the local economy.”

“However, it’s not too late to change this sad state of affairs. We know the government recognizes the economic and social value of pubs and we’re not asking for special treatment, we want the sector’s rich potential unleashed.”

Supply chain impact

According to the BBPA, the beer and pub sector contributes more than £34 billion (US$45 billion) to the UK economy annually. It projects that 2025 figures will compare to 350 closures in 2024.

“We’re calling on the government to proceed with meaningful business rates reform, mitigate these eye-watering new employment and extended producer responsibility costs, and cut beer duty,” says McClarkin.

The body warns that pub closures will further impact those in the supply chain, including farmers, brewers, and other industries that form part of the sector’s wider ecosystem.

In other news, Heineken UK recently invested £39 million (US$49.06 million) in upgrading and reopening pubs in its Star Pubs’ estate this year. The company will use the cash injection to improve 612 pubs, creating around 1,075 new jobs, and also reopen 62 long-term closed locals.